Local Option - Special Assessment of Wind Energy Devices

If your city or county in Iowa adopts this ordinance, your wind energy system qualifies for a reduced property tax valuation that starts at 0% of its net acquisition cost in year one and increases by 5 percentage points annually, reaching 30% by year seven—where it stays for at least 19 years total. To claim this benefit, you must file for the special valuation by February 1 of the year your system is first assessed; if you miss this deadline or your locality hasn't adopted an ordinance, you may still receive a five-year property tax exemption on the new construction itself under state law.

This program allows you to help customers in Iowa municipalities that have adopted the special wind assessment ordinance reduce their long-term property tax burden on wind installations. Your role is to inform homeowners and agricultural/commercial clients of the filing deadline (February 1 of the first assessment year) and ensure they understand the valuation schedule—starting at 0% and increasing 5% annually to 30%. Note that systems must be fully completed before assessment begins, and the ordinance applies to all wind sizes and all sectors.

This local-option property tax incentive is administered at the city and county level in Iowa, allowing jurisdictions to adopt ordinances that phase in wind energy assessments over seven years (0% to 30% of net acquisition cost) with protections extending through the 19th assessment year. If a locality repeals its ordinance, systems retain the 30% rate through year 19, then revert to market-value assessment. The program is funded through foregone property tax revenue at the local level and targets residential, agricultural, commercial, and industrial wind installations (all sizes). Key enforcement points: systems are not assessable until complete, partial assessments are prohibited, and taxpayers must file by February 1 to qualify; those who miss the deadline fall under state statutes 428.24–428.29 and 441.21(8), which offer a five-year exemption on new wind construction instead.